Impact of Internally Generated Revenue on Economic Growth in Ebonyi State, Nigeria

The study examined the Impact of Internally Generated Revenue on Economic Growth in Ebonyi State, Nigeria from 2007 to 2022. Specifically, the impacts of internally generated revenue measured by pay-as-you-earn, withholding tax, direct assessment tax, and administrative tax on economic growth represented by Gross Domestic Product in Ebonyi State were examined. The theory of fiscal decentralization was adopted for the study. The study employed ex post factoresearch design. Data was obtained through the Ebonyi State Ministry of Budget, Planning, Research & Monitoring, Office of the Accountant General of the State, and Ebonyi State Internal Revenue Service (EBSIRS) for the period under study. The multiple linear regression model involving ordinary least square (OLS) estimation approach using E-view econometric software version 12 to analyze the data collected. The study made the following findings: that pay-as-you-earn has significant negative impact on gross domestic product; that there is presence of negative and significant impact of withholding tax on gross domestic product; that direct assessment tax has positive and significant impact on gross domestic product; and that administrative tax has positive but significant effect on gross f domestic product in Ebonyi State, Nigeria. The study then recommended among others that Nigerian government should pay particular attention to the reduction of the pay-as-you-earn (PAYE) rate because high PAYE rate has the tendency of adversely affecting gross domestic product. Also, the rate of withholding tax should be reduced to a relatively low level so as to boost gross domestic product and subsequently translate to economic growth in Ebonyi State, Nigeria. Again, Ebonyi State government should expand the tax yield through restructuring its direct assessment tax dragnet. Furthermore, to ensure sustainable gross domestic product through administrative tax, the state government should encourage her citizens to build trust in it through tax accountability, making sure that the promises made to the citizens are fulfilled.